The Commission of Inquiry into the Development Finance Corporation (DFC) is scheduled to resume public hearings on Wednesday, February 14, with two witnesses. Commissioner Merlene Bailey-Martinez, co-chair, said that the Commission has not yet decided if and when it would call David Novelo to testify in public hearings.
Novelo was summoned to testify on February 2, 2007, but was not called to testify. The Commission said that he was not called then because time ran out.
On Thursday, February 8, Novelo submitted a letter to the Commission, alleging that forensic auditor Mark Hulse, CPA, has a conflict of interest because he was a part of the management team for the receivership of Novelo Bus Line, which was a DFC client of DFC on which Hulse reported.
However, Commissioner Bailey-Martinez told us today that Hulse was only asked to report to the Commission on procedural matters relating to the Novelo loan – and that was before the receivership took effect.
Financial Secretary, Dr. Carla Barnett, told us today that even before Government hired Hulse to do the audit for the Commission, they knew of his involvement with the receivership, but he was not managing the receivership, and his involvement was only for a short period of time, said Dr. Barnett. There is no reason to believe there is a conflict of interest, she stated.
Now the Commission is unsure whether it will call Novelo to give public testimony after all.
Today we asked Commissioner Bailey-Martinez whether Novelo’s testimony regarding the use of the $30 million his company got from the DFC, is not material to the investigation. Her reply was yes, but she added that the Commission may take his testimony “in camera.”
Speaking with Amandala today, David Novelo said that he has not received any formal response to the letter he submitted to the Commission last week. He said that he stands by his position and plans to submit a further letter to the Commission, elaborating on the claim that Hulse has a conflict of interest in the investigation.
Despite several attempts we have still been unable to speak with Hulse. We left messages for him at his office, but at press time our calls had not been returned.
The next public hearing has been set for Tuesday, February 20, 2007. At least three witnesses remain on the roster to appear before the Commission: Hon. Ralph Fonseca, former Minister of Finance who was one of two Ministers in charge of the DFC for the period under investigation – 1999 to 2004; Troy Gabb – former DFC CEO; and Glenn D. Godfrey – former DFC chairman.
Late this evening, we received a copy of a signed letter Novelo sent to Central Bank Governor Sydney Campbell, making the same conflict of interest claim against Hulse and furthermore asking the Central Bank to take action.
We note, however, that up to the time of this report, Novelo had not written Central Government, which appointed Hulse as forensic auditor in the DFC Commission of Inquiry, with his allegations against Hulse.